Other Things to Consider

Here are some other things to take into account when you look at the APR.

The more you are financing, the less impact all of those fees will have on the APR, simply because the APR is calculated based on the total loan amount.

The length of time you are actually in the home before you sell or refinance has a direct influence on the effective interest rate you ultimately get. For example, if you move or refinance after three years instead of 30, after having paid two points at the loan closing, your effective interest rate for the loan is much higher than if you stay for the full loan term.

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